PASADENA, Calif., Feb. 11 /PRNewswire-FirstCall/ -- Highlights
Fourth Quarter 2009: -- Fourth Quarter 2009 Funds from Operations
Per Share (Diluted) Attributable to Alexandria Real Estate
Equities, Inc.'s Common Stockholders of $1.09 -- Fourth Quarter
2009 Earnings Per Share (Diluted) Attributable to Alexandria Real
Estate Equities, Inc.'s Common Stockholders of $0.49 -- Fourth
Quarter 2009 GAAP Same Property Revenues Less Operating Expenses Up
1.1% -- Executed 40 Leases for 489,000 Rentable Square Feet --
Fourth Quarter 2009 GAAP Rental Rate Increase of 1.5% on
Renewed/Released Space -- Fourth Quarter 2009 Occupancy Remains
Relatively Steady at 94% -- Closed 10-Year Secured Loan for $120
Million -- Sold One Property Aggregating 47,558 Rentable Square
Feet Previously Classified as "Held For Sale" to a Life Science
User -- As of December 31, 2009, Three Properties Aggregating
221,638 Rentable Square Feet Under Contract, LOI or Under
Negotiation and Classified as "Held for Sale" Year Ended December
31, 2009: -- Total Return Performance of 456% from May 28, 1997 to
December 31, 2009, Assuming Reinvestment of All Dividends --
Positive GAAP Year-to-Year Lease Rolls for 11 Consecutive Years --
Average December 31 Occupancy Percentage of 95% from December 31,
1998 to December 31, 2009 -- Positive GAAP Same Property Growth
Quarter-to-Quarter for 46 Consecutive Quarters -- 2009 Funds from
Operations Per Share (Diluted) Attributable to Alexandria Real
Estate Equities, Inc.'s Common Stockholders of $5.52 -- 2009
Earnings Per Share (Diluted) Attributable to Alexandria Real Estate
Equities, Inc.'s Common Stockholders of $2.72 -- Operating Margins
Steady at 74% -- GAAP Same Property Revenues Less Operating
Expenses up 2.8% -- Executed 142 Leases for 1,864,000 Rentable
Square Feet -- GAAP Rental Rate Increase of 3.5% on
Renewed/Released Space -- Entered into 15-Year Lease Aggregating
100,000 Rentable Square Feet with Eli Lilly and Company as Anchor
Tenant at Alexandria Center(TM) for Life Science - New York City --
Leased 310,000 Rentable Square Feet of Redevelopment and
Development Space -- Completed Ground-Up Development of Property at
Mission Bay, San Francisco Aggregating 102,000 Rentable Square Feet
Pursuant to a 15-Year Lease with Pfizer Inc. -- Completed
Redevelopment of Multiple Spaces at 10 Properties Aggregating
227,000 Rentable Square Feet; 72% Leased -- Reduced Principal
Balances of Secured Notes Payable by $267 Million -- Extended
Maturities or Refinanced Secured Notes Payable Aggregating $159
Million -- Closed 10-Year Secured Loan for $120 Million -- Sold
Four Properties Aggregating 111,776 Rentable Square Feet to Life
Science Users -- Closed Two Follow-on Common Stock Offerings with
Aggregate Net Proceeds of $488 Million -- Closed Private Offering
of 8.00% Unsecured Convertible Notes with Net Proceeds of $233
Million -- Repurchased, in Privately Negotiated Transactions, $75
Million (Par Value) of Our 3.70% Unsecured Convertible Notes Other:
-- Received LEED® Gold Certification for Building in San Diego
Market in 2009 and LEED Silver Certifications for Two Buildings in
San Francisco Bay Market in January 2010 -- Completed Ground-Up
Development of One Property in Seattle, Washington Aggregating
115,000 Rentable Square Feet Pursuant to a 10-Year Lease with
Gilead Sciences Inc. in February 2010 Alexandria Real Estate
Equities, Inc. (NYSE:ARE) today announced operating and financial
results for the fourth quarter and year ended December 31, 2009.
Financial Results For the fourth quarter of 2009, we reported funds
from operations ("FFO") attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders of $54,247,000, or $1.09 per
share (diluted), compared to FFO attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders of $47,190,000, or
$1.48 per share (diluted), for the fourth quarter of 2008.
Comparing the fourth quarter of 2009 to the fourth quarter of 2008,
FFO attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders increased 15% and FFO per share (diluted) attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders
decreased 26%. The weighted average number of basic and diluted
common stock outstanding for calculating FFO per share (diluted)
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders totaled 43,715,462 and 49,547,402, respectively, for
the fourth quarter of 2009 and 31,757,072 and 31,810,348,
respectively, for the fourth quarter of 2008. For the year ended
December 31, 2009, we reported FFO attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders of $234,696,000, or
$5.52 per share (diluted), compared to FFO attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders of
$177,519,000, or $5.59 per share (diluted), for year ended December
31, 2008. Comparing the year ended December 31, 2009 to the year
ended December 31, 2008, FFO attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders increased 32% and FFO per
share (diluted) attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders decreased 1%. FFO is a non-GAAP measure
widely used by publicly traded real estate investment trusts. We
compute FFO in accordance with standards established by the Board
of Governors of the National Association of Real Estate Investment
Trusts ("NAREIT") in its April 2002 White Paper and related
implementation guidance. A reconciliation of net income
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders in accordance with United States generally accepted
accounting principles ("GAAP") to FFO attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders is included in the
financial information accompanying this press release. The primary
reconciling item between GAAP net income attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders and FFO
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders is depreciation and amortization expense. Depreciation
and amortization expense for the three months ended December 31,
2009 and 2008 was $29,004,000 and $28,483,000, respectively.
Depreciation and amortization expense for the year ended December
31, 2009 and 2008 was $118,508,000 and $108,743,000, respectively.
Net income attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders for the fourth quarter of 2009 was $21,650,000,
or $0.49 per share (diluted), compared to net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders of
$19,224,000, or $0.60 per share (diluted), for the fourth quarter
of 2008. The weighted average number of basic and diluted common
stock outstanding for calculating earnings per share attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders
totaled 43,715,462 and 43,750,301, respectively, for the fourth
quarter of 2009 and 31,757,072 and 31,810,348, respectively, for
the fourth quarter of 2008. Net income attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders for the year ended
December 31, 2009 was $104,974,000, or $2.72 per share (diluted),
compared to net income attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders of $90,751,000, or $2.86 per
share (diluted), for the year ended December 31, 2008. Leasing
Activity For the year ended December 31, 2009, we executed a total
of 142 leases for approximately 1,864,000 rentable square feet of
space at 57 different properties (excluding month-to-month leases).
Of this total, approximately 1,188,000 rentable square feet related
to new or renewal leases of previously leased space and
approximately 676,000 rentable square feet related to developed,
redeveloped or previously vacant space. Of the 676,000 rentable
square feet, approximately 310,000 rentable square feet were
delivered from our development or redevelopment programs, with the
remaining approximately 366,000 rentable square feet related to
previously vacant space. Rental rates for these new or renewal
leases were on average approximately 3.5% higher (on a GAAP basis)
than rental rates for expiring leases. For the fourth quarter of
2009, we executed a total of 40 leases for approximately 489,000
rentable square feet of space at 31 different properties (excluding
month-to-month leases). Of this total, approximately 374,000
rentable square feet related to new or renewal leases of previously
leased space and approximately 115,000 rentable square feet related
to developed, redeveloped or previously vacant space. Of the
115,000 rentable square feet, approximately 58,000 rentable square
feet were related to our development or redevelopment programs,
with the remaining approximately 57,000 rentable square feet
related to previously vacant space. Rental rates for these new or
renewal leases were on average approximately 1.5% higher (on a GAAP
basis) than rental rates for expiring leases. As of December 31,
2009, approximately 88% of our leases (on a rentable square footage
basis) were triple net leases, requiring tenants to pay
substantially all real estate taxes and insurance, common area and
other operating expenses, including increases thereto. In addition,
approximately 8% of our leases (on a rentable square footage basis)
required the tenants to pay a majority of operating expenses.
Additionally, approximately 91% of our leases (on a rentable square
footage basis) provided for the recapture of certain capital
expenditures, and approximately 93% of our leases (on a rentable
square footage basis) contained effective annual rent escalations
that were either fixed or indexed based on the consumer price index
or another index. Dispositions and Properties "Held for Sale"
During the year ended December 31, 2009, we sold four properties
aggregating 111,776 rentable square feet to life science users.
Three of these properties were located in the San Diego market and
were sold in the first quarter of 2009 for approximately $14.5
million at a gain of approximately $2.2 million. In the fourth
quarter of 2009, we sold one property located in the Suburban
Washington, D.C. market aggregating 47,558 rentable square feet to
a life science user for approximately $6.4 million at a gain of
approximately $393,000. As of December 31, 2009, three properties
aggregating 221,638 rentable square feet were under contract,
letter of intent or under negotiation and were classified as "held
for sale." Other Recent Events In October 2009, we closed a 10-year
secured loan with an insurance company with a loan amount of $120
million. The loan is secured by several of our operating
properties. Earnings Outlook Based on our current view of existing
market conditions and certain current assumptions, our updated
guidance for FFO per share (diluted) attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders and earnings per
share (diluted) attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders is as follows: 2010 -------- FFO per
share (diluted) (1) $4.42 (1) Earnings per share (diluted) (1)
$1.84 (1) (1) Our guidance for FFO per share (diluted) for the year
ended December 31, 2010 assumes conversion of our 8% unsecured
convertible notes as the impact of the conversion is expected to be
dilutive under the "if-converted" method. Our guidance for earnings
per share (diluted) for the year ended December 31, 2010, however,
does not assume conversion of our 8% unsecured convertible notes as
the impact of the conversion is expected to be anti-dilutive under
the "if-converted" method. Client Tenant Base Alexandria Real
Estate Equities, Inc. ("Alexandria") has a very broad and
diversified quality client tenant base. As of December 31, 2009, on
an annualized base rent basis by sector, Alexandria's multinational
pharmaceutical client tenants led by its top client tenants
Novartis AG, Roche Holding Ltd, GlaxoSmithKline plc, Pfizer Inc.,
Johnson & Johnson and Merck & Co., Inc., represented
approximately 28% of its client tenant base; revenue producing life
science product and service companies led by Quest Diagnostics
Incorporated, Qiagen N.V., Laboratory Corporation of America
Holdings and Monsanto Company represented approximately 20% of its
client tenant base; public biopharmaceutical companies represented
approximately 17% of its client tenant base and included the three
largest in the sector, Amgen Inc., Gilead Sciences, Inc., Celgene
Corporation; government agencies and renowned medical and research
institutions represented approximately 15% of its client tenant
base and included The Scripps Research Institute, Massachusetts
Institute of Technology, Fred Hutchinson Cancer Research Center,
University of Washington, the Burnham Institute for Medical
Research and the United States Government; private
biopharmaceutical companies represented approximately 13% of its
client tenant base and included high-quality, leading-edge
companies with blue chip venture and institutional investors,
including Achaogen, Inc., Ambrx, Inc., Intellikine, Inc.,
MacroGenics, Inc. and ToleRx, Inc.; the remaining approximately 7%
of its client tenant base consisted of traditional office tenants.
The two fastest growing client tenant sectors by revenue currently
include leading institutional and multinational pharmaceutical. The
unique and innovative business model which Alexandria pioneered is
coupled with very strong and unique life sciences and underwriting
skills with substantial experience and expertise, long-term life
science industry relationships and sophisticated management with
both real estate and life science operating experience and
expertise, set Alexandria apart from all other publicly-traded
REITs. Earnings Call Information We will host a conference call on
Thursday, February 11, 2010 at 3:00 p.m. Eastern Time ("ET")/12:00
p.m. noon Pacific Time ("PT") that is open to the general public to
discuss our financial and operating results for the fourth quarter
and year ended December 31, 2009. To participate in this conference
call, dial (785) 830-7990 and confirmation code 2402872, shortly
before 3:00 p.m. ET/12:00 p.m. noon PT. The audio web cast can be
accessed at: http://www.labspace.com/, in the Corporate Information
section. A replay of the call will be available for a limited time
from 6:00 p.m. ET/3:00 p.m. PT on Thursday, February 11, 2010. The
replay number is (719) 457-0820 and the confirmation code is
2402872. Additionally, a copy of Alexandria Real Estate Equities,
Inc.'s Supplemental Financial, Operating & Property Information
for the quarter ended December 31, 2009 and this press release are
available in the Corporate Information section of our website at
http://www.labspace.com/. About the Company Alexandria Real Estate
Equities, Inc., Landlord of Choice to the Life Science Industry®,
is the largest owner and pre-eminent first-in-class REIT and
leading provider of high-quality environmentally sustainable real
estate, technical infrastructure, and services to the broad and
diverse life science industry focused in the leading life science
clusters. Client tenants include institutional (universities and
independent not-for-profit institutions), pharmaceutical,
biotechnology, medical device, product, service and translational
entities, as well as government agencies. Alexandria's operating
platform is based on the principle of "clustering," with assets and
operations located in key life science markets. Our asset base
approximates 12.7 million rentable square feet consisting of 156
properties approximating 11.8 million rentable square feet
(including spaces undergoing active redevelopment) and properties
undergoing ground-up development approximating an additional
980,000 rentable square feet. In addition, our asset base will
enable us to grow to approximately 23.9 million rentable square
feet through additional ground-up development approximating 11.1
million rentable square feet of office/laboratory space. This press
release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, without limitation, statements
regarding our 2010 earnings per share (diluted) attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders, 2010
FFO per share (diluted) attributable to Alexandria Real Estate
Equities, Inc.'s common stockholders, the business plans of certain
tenants and the expected impact of the conversion of our unsecured
convertible notes. Our actual results may differ materially from
those projected in such forward-looking statements. Factors that
might cause such a difference include, without limitation, our
failure to obtain capital (debt, construction financing and or
equity) or refinance debt maturities, increased interest rates and
operating costs, adverse economic or real estate developments in
our markets, our failure to successfully complete and lease our
existing space held for redevelopment and new properties acquired
for that purpose and any properties undergoing development, our
failure to successfully operate or lease acquired properties,
decreased rental rates or increased vacancy rates or failure to
renew or replace expiring leases, defaults on or non-renewal of
leases by tenants, general and local economic conditions and other
risks and uncertainties detailed in our filings with the Securities
and Exchange Commission ("SEC"). All forward-looking statements are
made as of the date of this press release, and we assume no
obligation to update this information. For more discussion relating
to risks and uncertainties that could cause actual results to
differ materially from those anticipated in our forward-looking
statements, and risks to our business in general, please refer to
our SEC filings, including our most recent annual report on Form
10-K and any subsequent quarterly reports on Form 10-Q. ALEXANDRIA
REAL ESTATE EQUITIES, INC. Condensed Consolidated Income Statements
(Dollars in thousands, except per share data) (Unaudited) Three
Months Ended Year Ended December 31, December 31, ------------
------------ 2009 2008 (1) 2009 2008 (1) -------- -------- --------
-------- Income statement data Total revenues $114,369 $124,504 (2)
$480,140 $451,637 Expenses Rental operations 29,064 28,468 120,494
112,035 General and administrative 8,463 8,973 36,290 34,789
Interest 19,406 20,934 81,271 84,108 Depreciation and amortization
29,031 27,874 116,909 106,394 Non-cash impairment on investments -
11,266 - 13,251 -------- -------- -------- -------- Total expenses
85,964 97,515 354,964 350,577 Gain on early extinguishment of debt
- - 11,254 - -------- -------- -------- -------- Income from
continuing operations 28,405 26,989 136,430 101,060 Income from
discontinued operations, net 1,500 579 5,218 19,037 --------
-------- -------- -------- Net income 29,905 27,568 141,648 120,097
Net income attributable to noncontrolling interests 924 971 7,047
3,799 Dividends on preferred stock 7,089 7,089 28,357 24,225 Net
income attributable to unvested restricted stock awards 242 284
1,270 1,327 -------- -------- -------- -------- Net income
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders $21,650 $19,224 $104,974 $90,746 ======== ========
======== ======== Earnings per share attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders - basic Continuing
operations $0.47 $0.59 $2.59 $2.28 Discontinued operations, net
0.03 0.02 0.13 0.59 -------- -------- -------- -------- Earnings
per share - basic $0.50 $0.61 $2.72 $2.87 ======== ========
======== ======== Earnings per share attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders - diluted
Continuing operations $0.46 $0.58 $2.59 $2.27 Discontinued
operations, net 0.03 0.02 0.13 0.59 -------- -------- --------
-------- Earnings per share - diluted $0.49 $0.60 $2.72 $2.86
======== ======== ======== ======== (1) Includes the retrospective
impact of new accounting provisions adopted on January 1, 2009
related to accounting for and disclosure of convertible debt,
noncontrolling interests and participating securities. (2) In
December 2008, the Company entered into a modification of a lease
in South San Francisco resulting in the recognition of additional
rental income approximating $11.3 million in the fourth quarter of
2008. ALEXANDRIA REAL ESTATE EQUITIES, INC. Condensed Consolidated
Balance Sheets (In thousands) (Unaudited) December 31, ------------
2009 2008 (1) ---------- ---------- Assets Rental properties, net
$3,383,308 $3,215,723 Land held for future development 255,025
109,478 Construction in progress 1,400,795 1,398,895 Cash and cash
equivalents 70,628 71,161 Tenant security deposits and other
restricted cash 47,291 67,782 Tenant receivables 3,902 6,453
Deferred rent 96,700 85,733 Investments 72,882 61,861 Other assets
126,696 114,991 ---------- ---------- Total assets $5,457,227
$5,132,077 ========== ========== Liabilities and Equity Secured
notes payable $937,017 $1,081,963 Unsecured line of credit and
unsecured term loan 1,226,000 1,425,000 Unsecured convertible notes
583,929 431,145 Accounts payable, accrued expenses and tenant
security deposits 282,516 386,801 Dividends payable 21,686 32,105
---------- ---------- Total liabilities 3,051,148 3,357,014
Redeemable noncontrolling interests 41,441 33,963 Alexandria Real
Estate Equities, Inc. stockholders' equity: Series C preferred
stock 129,638 129,638 Series D cumulative convertible preferred
stock 250,000 250,000 Common stock 438 319 Additional paid-in
capital 1,977,062 1,407,294 Accumulated other comprehensive loss
(33,730) (87,241) ---------- ---------- Total Alexandria Real
Estate Equities, Inc. stockholders' equity 2,323,408 1,700,010
Noncontrolling interests 41,230 41,090 ---------- ---------- Total
equity 2,364,638 1,741,100 ---------- ---------- Total $5,457,227
$5,132,077 ========== ========== (1) Includes the retrospective
impact of new accounting provisions adopted on January 1, 2009
related to accounting for and disclosure of convertible debt,
noncontrolling interests and participating securities. ALEXANDRIA
REAL ESTATE EQUITIES, INC. Earnings per Share (Unaudited) Earnings
per Share ("EPS") The following table presents the computation of
basic and diluted EPS for the three months and year ended December
31, 2009 and 2008 (in thousands, except share and per share data):
Three Months Ended Year Ended December 31, December 31,
------------ ------------ 2009 2008 (1) 2009 2008 (1) ----------
---------- ---------- ---------- Net income attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders -
numerator for basic earnings per share $21,650 $19,224 $104,974
$90,746 Assumed conversion of 8% unsecured convertible notes - - -
- Effect of dilutive securities and assumed conversion attributable
to unvested restricted stock awards - - - 5 ---------- ----------
---------- ---------- Net income attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders assuming effect of
dilutive securities and assumed conversion - numerator for diluted
earnings per share $21,650 $19,224 $104,974 $90,751 ==========
========== ========== ========== Weighted average shares of common
stock outstanding for calculating earnings per share attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders -
denominator for basic earnings per share 43,715,462 31,757,072
38,586,909 31,653,829 Effect of dilutive securities and assumed
conversion: Dilutive effect of stock options 34,839 53,276 13,160
111,226 Assumed conversion of 8% unsecured convertible notes - - -
- ---------- ---------- ---------- ---------- Weighted average
shares of common stock outstanding for calculating earnings per
share attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders assuming effect of dilutive securities and
assumed conversion - denominator for diluted earnings per share
43,750,301 31,810,348 38,600,069 31,765,055 ========== ==========
========== ========== Earnings per share attributable to Alexandria
Real Estate Equities, Inc.'s common stockholders Basic $0.50 $0.61
$2.72 $2.87 ========== ========== ========== ========== Diluted
$0.49 $0.60 $2.72 $2.86 ========== ========== ========== ==========
(1) Includes the retrospective impact of new accounting provisions
adopted on January 1, 2009 related to accounting for and disclosure
of convertible debt, noncontrolling interests and participating
securities. ALEXANDRIA REAL ESTATE EQUITIES, INC. Funds from
Operations (Unaudited) Funds from Operations ("FFO") (1) The
following table presents a reconciliation of net income
attributable to Alexandria Real Estate Equities, Inc.'s common
stockholders, the most directly comparable GAAP financial measure
to FFO, to FFO attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders for the three months and year ended
December 31, 2009 and 2008 (in thousands, except share and per
share data): Three Months Ended Year Ended December 31, December
31, ------------ ------------ 2009 2008 (2) 2009 2008 (2)
---------- ---------- ---------- ---------- Net income attributable
to Alexandria Real Estate Equities, Inc.'s common stockholders
$21,650 $19,224 $104,974 $90,746 Add: Depreciation and amortization
(3) 29,004 28,483 118,508 108,743 Add: Net income attributable to
noncontrolling interests 924 971 7,047 3,799 Add: Net income
attributable to unvested restricted stock awards 242 284 1,270
1,327 Subtract: Gain on sales of property (393) (6) (2,627)
(20,401) Subtract: FFO attributable to noncontrolling interests
(1,006) (1,069) (3,843) (4,108) Subtract: FFO attributable to
unvested restricted stock awards (558) (698) (2,694) (2,596)
---------- ---------- ---------- ---------- FFO attributable to
Alexandria Real Estate, Inc.'s common stockholders - 49,863 47,189
222,635 177,510 numerator for basic FFO per share Add: Assumed
conversion of 8% unsecured convertible notes 4,362 - 11,943 - Add:
Effect of dilutive securities and assumed conversion attributable
to unvested restricted stock awards 22 1 118 9 ----------
---------- ---------- ---------- FFO attributable to Alexandria
Real Estate, Inc.'s common stockholders assuming effect of dilutive
securities and assumed conversion - numerator for diluted FFO per
share $54,247 $47,190 $234,696 $177,519 ========== ==========
========== ========== Weighted average shares of common stock
outstanding for calculating FFO per share attributable to
Alexandria Real Estate Equities, Inc.'s common stockholders -
denominator for basic FFO per share 43,715,462 31,757,072
38,586,909 31,653,829 Effect of dilutive securities and assumed
conversion: Dilutive effect of stock options 34,839 53,276 13,160
111,226 Assumed conversion of 8% unsecured convertible notes
5,797,101 - 3,954,735 - ---------- ---------- ---------- ----------
Weighted average shares of common stock outstanding for calculating
FFO per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders assuming effect of dilutive securities
and assumed conversion - denominator for diluted FFO per share
49,547,402 31,810,348 42,554,804 31,765,055 ========== ==========
========== ========== FFO per share attributable to Alexandria Real
Estate Equities, Inc.'s common stockholders Basic $1.14 $1.49 $5.77
$5.61 ========== ========== ========== ========== Diluted $1.09
$1.48 $5.52 $5.59 ========== ========== ========== ========== (1)
See note regarding FFO on page 9. (2) Includes the retrospective
impact of new accounting provisions adopted on January 1, 2009
related to accounting for and disclosure of convertible debt,
noncontrolling interests and participating securities. (3) Includes
depreciation and amortization for assets "held for sale" reflected
as discontinued operations (for the periods prior to when such
assets were designated as "held for sale"). Note Regarding Funds
from Operations GAAP basis accounting for real estate assets
utilizes historical cost accounting and assumes real estate values
diminish over time. In an effort to overcome the difference between
real estate values and historical cost accounting for real estate
assets, the Board of Governors of NAREIT established the
measurement tool of FFO. Since its introduction, FFO has become a
widely used non-GAAP financial measure among REITs. We believe that
FFO is helpful to investors as an additional measure of the
performance of an equity REIT. We compute FFO in accordance with
standards established by the Board of Governors of NAREIT in its
April 2002 White Paper (the "White Paper") and related
implementation guidance, which may differ from the methodology for
calculating FFO utilized by other equity REITs, and, accordingly,
may not be comparable to such other REITs. The White Paper defines
FFO as net income (loss) (computed in accordance with GAAP),
excluding gains (or losses) from sales, plus real estate related
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. FFO should not be
considered as an alternative to net income (determined in
accordance with GAAP) as an indication of financial performance, or
to cash flows from operating activities (determined in accordance
with GAAP) as a measure of our liquidity, nor is it indicative of
funds available to fund our cash needs, including our ability to
make distributions. DATASOURCE: Alexandria Real Estate Equities,
Inc. CONTACT: Joel S. Marcus, Chairman/Chief Executive Officer,
Alexandria Real Estate Equities, Inc., +1-626-578-9693 Web Site:
http://www.labspace.com/
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